DRO's and HB / CTB OVERPAYMENTS

Ms.Critical

ariarnia wrote: »

I'm sorry, but can someone explain what this actually means? My MIL has just been made redundant and owes council tax as she was incorrectly billed for about 4 months and has been told she needs to pay back £500 by invoice, she can't afford to do this so they have doubled her council tax bill over the next 6 months to pay it off. She will be on JSA (she's 54) until she can find another job so we're wondering how they will expect her to pay the countil tax back on £65 a week.

So, does this mean if you've been overpayed council tax and housing benifit it can no longer be deducted from your benifit? And is that the same as owing arrears because it was calculated incorrectly?

So how do they want you to pay it back now?

Is it only if you have a debt relief order and how can one get one of these?

Thank you.

Some other points for you to consider:

1) If the council have made an official error - and it is reasonable to assume your MiL did not know at the time, your Mil may be able to dispute recoverability of the overpayment. I say may as there are so many rules, seek advice from a welfare benefits specialist, worth looking into.

2) A redundancy pay for over £6k would affect the amount of benefit your MiL is entitled to. If she did not declare it initially and revealed it later - this would result in a legitimate over-payment, as would any savings over £6k

3) Indeed she should apply for HB and CTB as soon as possible, furthermore if MiL has good cause for late claim - i.e. she was in hospital (not the dog chewed the form) she can request a backdate for up to 3 months* this point is not to be relied upon in the distant future as this rule is near ready to be reduced to one month.

4) If MiL disputes the recovery - she should ask them to look at their decision again (in writing) ( a revision), She should also ask HB overpayment recovery to be put on hold. C Tax unfortunately are different the liability still remains on the property.

5) If Mil can not afford the amount requested by CTax - she should draw up a financial statement to show accurate income and expenditure, and take this, with evidence of income (JSA letter for instance or bank statement) to a recovery officer at her local authority office - both CTax and HB. Explain that she has already put in a claim for HB/CTB, this should help to reduce the debt somewhat. I'm not sure how your borough operates on a practical level, but I do know some of the legal procedures of LA's.

6) The Financial Statement will also serve your MiL well if she needs to renegotiate credit agreements (loans and Creditcards etc) - although any negotiating will adversley affect her credit record for the next 6 years, but hey - who needs credit?!

The main point is - get receipts and take copies for all paperwork taken to the benefits office.

fatbelly

Latest news:

Overpayment recovery where claimant subject to debt relief order

We have just received the news that the Court of Appeal has now granted DWP a stay of the judgement made in the Administrative Court on the 26th July. According to the attached bulletin the DWP are continuing, in existing cases, to recover overpayments by deductions from benefit where the overpayment has been included in a DRO. DWP will not for the time being, be making refunds of benefits already deducted in such cases. They have gone back on their previous Urgent Bulletin and Guidance and decided to carry on as before pending the appeal.

On 12th August the Court of Appeal granted the DWP a stay of a recent High Court judgment in which it was held that the Secretary of State does not have the right to recover overpayments of social security benefits (including housing benefit and council tax benefit) and social fund loans when the claimant is subject to a debt relief order.

In Urgent Bulletin U5/2010, issued yesterday, the DWP advises that, as a result of the stay -

'DWP are ... continuing, in existing cases, to recover overpayments by deductions from benefit where the overpayments have been included in a debt relief order. Also, DWP will not, for the time being, be making refunds of benefits already deducted in such cases. Local authorities will therefore need to decide whether they wish, in light of the stay, to continue recovery of overpayments that have been included in a debt relief order, by deductions from ongoing HB, CTB or any prescribed DWP benefit, or whether to commence or recommence recovery by this method in these cases.'

If local authorities do decide to continue making deductions in these cases, the DWP adds, a list of affected cases should be kept, so that they can cease making deductions and/or make refunds if the Secretary of State decides not to appeal against the judgment or does decide to appeal, but the appeal is unsuccessful. The DWP have until 8th September to file their Notice of Appeal.

preciousillusions

^i really don't understand? Sorry if i am being completely dumb but i am tired right now and cannot think straight!

I am paying back money from my incapacity benefit owed for a debt relief order. At the time of applying for my DRO i was told they still could recover this however they wanted (it's currently deducted in instalments with each benefit payment) while you are still within the yearly moratorium period. Is this still correct? My year is up in December so do i still have the right to have the repayments stopped at this point? Is the above post basically saying they had challenged whether any payments of benefits should be taken by the DWP but it has since been ruled they can?

Thanks in advance for any advice re this xxx

fermi

preciousillusions wrote: »

^i really don't understand? Sorry if i am being completely dumb but i am tired right now and cannot think straight!

I am paying back money from my incapacity benefit owed for a debt relief order. At the time of applying for my DRO i was told they still could recover this however they wanted (it's currently deducted in instalments with each benefit payment) while you are still within the yearly moratorium period. Is this still correct? My year is up in December so do i still have the right to have the repayments stopped at this point? Is the above post basically saying they had challenged whether any payments of benefits should be taken by the DWP but it has since been ruled they can?

Thanks in advance for any advice re this xxx

It was ruled that they could not be recovered from ongoing benefits.

But the judgement was "stayed" while DWP consider appealing, meaning it doesn't yet have any legal affect.

In other words, in legal 'limbo' for now, where recovery from benefits is OK until either the stay is lifted or the result of any appeal is known.

That's the way I read it anyway.

preciousillusions

Ah okay i see, so it's basically a matter of 'watch this space' i guess. Thank you for explaining!